November blues continues within Crypto Markets. Here is what happened!
Since the onset of the coronavirus-caused crash in March 2020, the majority of addresses holding Bitcoin, the most valuable cryptocurrency, have never experienced such a loss of funds. A little over 51 percent of all addresses, or 24.56 million out of the total 47.85 million, have investments that are below the purchase price, according to data provided by blockchain analytics company IntoTheBlock. The remaining investors are essentially at breakeven, with only about 45 percent of them being profitable or having unrealized profits.
For those who follow cryptocurrency, November was not the best month. The November Federal Reserve meeting, which demonstrated that the Federal Reserve will soon regain its footing with an aggressive monetary policy, encouraged the cryptocurrency markets to trade in a mixed manner. The week’s end saw higher trading for the biggest crypto coins. The biggest gainer was Solana, up 11%, followed by BNB, up 10%. Early Asian hours see Ethereum up 4%. On the last day, the market capitalization of all cryptocurrencies increased by 1.4% to $824.92 billion. The overall trade volume was, however, down 22%, coming in at slightly over $47.27 billion.
BTC experienced a 7.3% decline on November 20 and 21, as it looked at the $15,500 support. Although the correction seems little, the motion has resulted in the liquidations of futures contracts worth $230 million. On the macro front, investor sentiment in bitcoin decreased when Genesis Trading, a subsidiary of the conglomerate Digital Currency Group (DCG), stopped processing payments on its cryptocurrency lending arm on November 16. Additionally, given the financial uncertainty, bitcoin miner Core Scientific has expressed “serious worries” about continuing to operate over the next 12 months.
Numerous regulators made commitments to concentrate on enhancing crypto regulation in the wake of the FTX catastrophe. The International Monetary Fund (IMF) recommended stronger regulation in Africa’s crypto marketplaces, one of the world’s fastest-growing. The Australian government is intensifying its efforts to establish a regulatory framework for cryptocurrencies. Summer Mersinger, the commissioner of the Commodity Futures Trading Commission (CFTC) of the United States, suggested on November 18 that it may be time to take action on regulating cryptocurrencies. This prompted analysts to caution that cryptocurrencies are in the sights of American lawmakers.
The “FTX Drainer,” the person or thing in charge of the odd withdrawals from the collapsed cryptocurrency exchange FTX, is still trading Ether for Bitcoin in the meantime. A cryptocurrency bridge called the Ren BTC Gateway has now transferred $72 million in value between the two blockchains. It is used to send transfer tokens from one network to another. The subject party traded 1,023 renBTC ($16.3 million) for 20,000 ETH ($22.4 million) on November 21. This occurs after 50,000 ETH were exchanged for 3,517 renBT last week.
Binance however hopes to resurrect the cryptocurrency market. The dominant exchange declared that it had a duty to take the lead in defending customers and reviving the sector. In light of this, it created the Industry Recovery Initiative (IRI), which will let failing bitcoin businesses apply for financial aid. Binance has donated $1 billion in cryptocurrency to the project and could expand that sum to $2 billion if necessary. The business reported that it has already received 150 requests for assistance from different needy businesses.
In other news, The cryptocurrency corporation Nexo is being sued by a group of investors in the London High Court on the basis that it forbade them from withdrawing more than £107 million ($126 million) in bitcoin. The accounts of the three investors—Shane Morton and brothers Jason and Owen Morton—were allegedly frozen by Nexo when they tried to move their assets off the site. The Mortons claim that they were pressured into returning millions of dollars worth of Nexo’s native token to the company at a discounted price after being threatened with being banned from withdrawing their cryptocurrency.
The development team behind the decentralized exchange Uniswap, Uniswap Labs, revealed in a recently released privacy policy that it collects particular on-chain data from its users to improve the platform. We try to make data-driven decisions that improve customer experience, Uniswap Labs said. This covers both publicly accessible on-chain data and some limited off-chain data like device type and browser version. It does not collect personal information such as first and last names, addresses, dates of birth, email addresses, or IP addresses, according to Uniswap Labs.
The month has been tough but as Ripple’s APAC policy director stated “We still firmly believe that crypto is here to stay and that real use cases will withstand the test of time,”.